Business & IndustryAnalysis

China Opens First 10-Million-Tonne Crude Pipeline of 15th Five-Year Period

The newly commissioned Lianyungang-Huai'an pipeline strengthens energy security and industrial crude delivery across Jiangsu and the Yangtze River Delta.

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The Brief

State-owned operator PipeChina has officially commissioned the Lianyungang-Huai'an section of the Lianyungang-Yizheng crude oil pipeline project, marking the first crude pipeline with a capacity exceeding 10 million tonnes to enter service during China's 15th Five-Year Plan period. Spanning 143.8 kilometers with an annual design capacity of 18.5 million tonnes, the pipeline connects eastern coastal industrial zones with inland grid nodes, reinforcing energy delivery to refineries along the Yangtze River.

Why it matters

The operational launch of the Lianyungang-Huai'an section serves as a crucial link in China's national oil and gas network, bridging coastal import points with inland processing centers. By expanding midstream infrastructure in the eastern region, the project improves raw material supply security for petrochemical clusters in Jiangsu province and the wider Yangtze River Delta economy.

China context

As China transitions into its 15th Five-Year Plan period, energy authorities and state enterprises like PipeChina are accelerating the construction of a unified national pipeline infrastructure ('one national network'). The goal is to optimize energy allocation, reduce logistics costs for heavy industries, and buffer critical industrial regions against supply bottlenecks.

Editor's View

EDITOR'S VIEW — Analysis and inference, not factual reporting. The successful deployment of this pipeline highlights China's ongoing focus on energy midstream redundancy. While international markets often focus on China's headline crude import volumes, the internal distribution architecture remains equally vital to operational stability. Integrating coastal receiving terminals directly with inland refinery hubs via high-capacity pipelines reduces reliance on river barges and vulnerable transit routes, offering downstream petrochemical complexes steady operational flexibility.

What to watch

  • Progress on subsequent construction phases for the full Lianyungang-Yizheng crude pipeline line.
  • Actual daily throughput volume and operational capacity utilization as the line integrates with the Rizhao-Yizheng network.
  • Further announcements from PipeChina regarding major midstream oil and gas infrastructure projects scheduled under the 15th Five-Year Plan.

Key Takeaways

  • 1PipeChina commissioned the Lianyungang-Huai'an crude pipeline section, the first major oil pipeline put into service in the 15th Five-Year Plan period.
  • 2The 143.8 km line has an annual designed transport capacity of 18.5 million tonnes, with over 95% built across complex water networks.
  • 3Key engineering milestones included early completion of directional drilling crossings under the Xinyi and Guan rivers.
  • 4Connected to the Rizhao-Yizheng pipeline system, the line supports daily crude deliveries up to 70,000 tonnes to regional refining hubs.
State-owned operator PipeChina officially put into operation the Lianyungang-Huai'an section of the Lianyungang-Yizheng crude oil pipeline project, according to state media reports published on August 13. The project represents the first crude oil pipeline with a capacity exceeding 10 million tonnes to begin operation during China's 15th Five-Year Plan period. The newly built pipeline section originates at the Xuwei New District first station in Lianyungang, Jiangsu province, and terminates at the Huai'an oil transmission station along the existing Rizhao-Yizheng crude pipeline in Huai'an city. Covering a total length of 143.8 kilometers, the pipeline features a designed annual transmission capacity of 18.5 million tonnes. Construction of the pipeline encountered significant geographical challenges, with over 95% of the total route—approximately 138 kilometers—traversing dense water networks comprising rivers, canals, paddy fields, and fish ponds. To manage fluid mud and soft soil conditions, construction crews implemented specialized techniques including pre-drainage, pipe rack laydowns, and pipe-sinking methods to enable heavy machinery operation. Engineers also completed critical river crossings beneath the Xinyi River and Guan River 12 days ahead of schedule by deploying a combination of horizontal directional drilling and inner-beach tie-in methods, clearing the main bottleneck along the route. Following its commissioning, the Lianyungang-Huai'an pipeline connects directly into the operational Rizhao-Yizheng pipeline system, facilitating the transport of crude oil to the Yizheng hub, a central distribution node in eastern China. According to PipeChina officials cited by People's Daily, the interconnected pipeline can achieve a maximum daily transmission volume of up to 70,000 tonnes. The expanded capacity is expected to streamline imported crude allocation and enhance raw material supply resilience for refining and chemical enterprises operating throughout Jiangsu province and the broader Yangtze River corridor.

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